After being discharged from a bankruptcy or having completed a proposal, you will probably want to rebuild your credit. Your credit rating will have been affected, but it will only be temporary if you follow the tips outlined in this guide.
Here are 10 tips which will help you rebuild your credit after a bankruptcy or proposal:
1. Open a savings account.
Even if your credit rating is not great, you have the right to open a bank account to put money aside. Your savings will offer you financial stability and will help you deal with unexpected expenses.
2. Make regular deposits into your savings account.
Automatically deposit a percentage of your pay into your savings account. This money will come in handy when you request a loan.
3. Ask your banker for advice.
Talk to your banker about your intention to rebuild your credit. He can give you personalized advice and more information.
4. Pay your rent 3 days before the due date.
These 3 days will ensure that the check is cashed and will help avoid delays. Your landlord will be impressed and may provide you with excellent references.
5. Apply for a secured credit card.
This type of credit card is one of the best tools to rebuild your credit. Each monthly payment will appear on your credit report. Since a guaranteed amount protects you against an overdraft, you can be assured not to miss a payment.
6. Check your credit report.
Contact the credit bureaus to obtain your credit report. Examine it carefully and make sure there are no errors or incorrect information.
7. Pay your bills on time.
Make sure not to be late on your bill payments (phone, electricity, cable, etc.)
8. Keep a low balance on your credit card.
A high balance on your credit card has a bad impact on your credit report.
9. Pay your credit card balance in full.
Make your payment as soon as possible and pay the balance in full.
10. Get only one credit card.
You only need one credit card, no more. Avoid over-indebtedness and, most importantly, avoid paying the balance of a credit card with another.
